1 reviews | Active since Aug 2018
Incorrect application of lay-bye agreements in terms of CPA 68/2008
This store is applying the lay-bye policy incorrectly.
They charge a 15% fee should you wish to cancel your lay-bye.
It is uncommon for someone to enter into an agreement with the purposes of not seeing it through. I purchased an item on lay-bye and after two payments I realised that I do not need the item and instead would like to look saving the money for other options.
I spoke to the store manager in Centurion, very rude... she goes by the name, Bernadet. I doubt she has any form of qualification(s) because she does not know her laws nor does she have any customer service.
In terms of the Consumer Protections Act 68/2008 a seller cannot charge you more than a 1% cancellation fee on a lay-bye agreement. Section 62 and Regulation 34(1) of the Act are clear in this regard.
The agreements filled out in these stores charge consumers a whopping 15% which is in direct violation of the law.
Something needs to be done about this.
How many people agree to these agreements without understanding the full extent of this penalty? How many other people have been taken advantage of?
Your legal team ought to be aware that despite the fact that a contract was made and agreed upon, the part which is in contradiction with the laws of South Africa cannot stand, of course it does not nullify the entire contract but only that which is inconsistent with the law and that is exactly what the 15% you charge your customers is... the law on lay-byes is clear in the CPA, a fee of not more than 1% can be charged for cancellations.
Please do due diligence and read and Consumer Protections Act. It is there for a reason, to protect consumers from these types of contracts.
Your legal team ought to be aware that despite the fact that a contract was made and agreed upon, the part which is in contradiction with the laws of South Africa cannot stand, of course it does not nullify the entire contract but only that which is inconsistent with the law and that is exactly what the 15% you charge your customers is... the law on lay-byes is clear in the CPA, a fee of not more than 1% can be charged for cancellations.
Please do due diligence and read and Consumer Protections Act. It is there for a reason, to protect consumers from these types of contracts.